DUBLIN–A Social Return on Investment study commissioned by one credit union here has found that for every euro equivalent invested, €10 of social value was created.
The study, commissioned by Donore Credit Union, argues that while credit unions are guided by co-operative values and principles, democratically owned and governed and committed to their local communities, articulating these concepts in “a clear, consistent and persuasive manner” can be a real challenge for the sector, noted Cooperative News.
The credit union’s new report aims to demonstrate the social impact and social value of credit unions.
The evaluation covered October 2018 through September 2019, using qualitative and quantitative research. The first phase featured three focus groups one for members, one for volunteers and one for staff, as well as semi-structured interviews with 19 stakeholders, Cooperative News reported.
The Second Phase
A second phase involved quantitative research via an online members’ survey, which was also available as a printed survey in the credit union, the report added.
In all, some 360 eligible responses were gathered, with respondents representing 8% of the total membership, which is comprised of the boundaries of the catholic parish of Donore Avenue, Cooperative News stated. To join, locals have to make a one-off payment of €1 and buy at least €10 in share.
In the survey, respondents gave Donore CU an average satisfaction rating of eight out of ten. Around 53% of them felt that Donore CU provided them with a lot of useful information and advice, with a further 33% saying that they received some useful information or advice from Donore CU.
According to Cooperative News, among the other findings was that respondents tended to identify as members of Donore CU, not as customers, believing they had a stake in what the credit union did and that their voices were being heard.
Feeling ‘Understood’
“Members also said they felt understood by staff members and trusted them,” Cooperative News stated, adding members said they felt proud in being Ireland’s first credit union.
Respondents further said that being a member of the credit union provided them relief from money worries, this being the outcome that delivered greatest value.
“In 2020, we became the first credit union in Ireland to measure and report on our social impact when we released our Social Return on Investment Report,” CEO David McAuley told the publication. “One of the results of this report is it allowed us to manage and focus during COVID-19, a period in which we have grown our loan book and retained full operations.
“By understanding and recognizing our social worth we can focus on core values and it is these core values that remain attractive and wanted by members,” continued McAuleyu. “Equally, we realized what unique values and attributes we had and the necessity to promote and publicize them. Credit unions face a lot of doomsayers and naysayers, however, when we appreciate and realize that core values are unique selling points and key differentiators and we are prepared to leverage off these, the possibilities are endless.”
Using the Findings
The findings of the study will serve to inform legislators, policy makers and regulators about the total value that a small, local credit union can bring about, Cooperative News reported.
Donor CU told the publication it is open to discussing the process of undertaking a SROI study and the results of the study with any interested parties, both inside the credit union movement and outside it.